BOISE, Idaho — Idaho Power rates are expected to increase beginning in June.
On Friday, the Idaho Public Utilities Commission approved two rate changes impacting Idaho Power customers.
The first is a power cost adjustment (PCA). The PCA enables Idaho Power to increase, or decrease, rates according to what it actually costs them to provide power to customers.
This cost is somewhat variable, dependent on how the rivers are flowing, the amount of power that had to be purchased, the cost of fuel, the going market price of power, and other factors.
The PCA is also dependent on a formula considering the base rate the company pays for power and the overall energy consumed by Idaho customers.
The Idaho Public Utilities Commission says the PCA is only used to cover expenses and that there is no financial gain to Idaho Power or its shareholder based on this rate.
Idaho Power estimates the average increase in this rate to customers will be approximately $12.72 per month.
The other rate approved by the commission is the fixed cost adjustment (FCA) which mostly impacts residential and small commercial customers.
Fixed costs are associated with what it costs Idaho Power to provide service that is not dependent on fluctuations in the economy or natural factors.
The FCA is adjusted annually, up or down, to make up the difference in what the commission had estimated for costs charged to Idaho Power to provide service and what the utility actually recovered from the customer base.
This year, residential customers can expect an average decrease in their FCA, expected to be approximately $1.66 per month from June 1, 2023 through May 31, 2024, when the FCA will be recalculated.
Average rate costs are based on monthly usage of 950 kilowatt-hours.
Overall, customers can expect to see an increase of about $11 per month for their power bill, or about a 10% overall increase for residential customers.
Small and large general service customers can expect between 8-16% increases, while large power customers will see an increase of around 20%.
Additional information regarding the decisions and adjustments can be found on the commission's website.
